The United States has expressed interest in key Indian agricultural exports, including shrimp, basmati rice, spices, processed grains, and other value-added products.
New Delhi: Ongoing agricultural trade talks between India and the United States will prioritize the interests of Indian farmers. Union Agriculture Minister Shivraj Singh Chouhan has explicitly stated that any decision regarding this bilateral trade agreement will not be taken hastily, but only after a thorough assessment of potential benefits and drawbacks. Meanwhile, the US seeks improved access to the Indian agricultural market, while India remains vigilant in protecting its farmers' interests and domestic producers.
Protecting Farmers is Paramount in Trade Talks
India's stance in the ongoing bilateral trade discussions with the US is clear. In an interview, Agriculture Minister Shivraj Singh Chouhan stated, "Our aim is not only to secure a trade agreement but also to safeguard our farmers. We will not make any decisions without careful deliberation. We will proceed only after considering every aspect."
Chouhan emphasized that India is discussing the potential for expanding agricultural trade with the US, but this discussion will not proceed without safeguarding farmers' interests. Any decision will be made only after considering the broader aspects of trade between the two countries.
India-US Agricultural Trade: Current Status
According to a recent NITI Aayog report, during the three-year period ending in 2024, India exported approximately $5.75 billion worth of agricultural products to the US. Conversely, India's imports of agricultural and related products from the US amounted to roughly $2.22 billion. India's main export products include shrimp, basmati rice, spices, processed grains, and other value-added items.
On the other hand, the US seeks to export agricultural products such as corn, soybeans, and animal feed to India. However, the US faces high tariffs (averaging 39-50 percent) for market entry in India, which remains a major obstacle to an agreement.
Dispute over High Tariffs and Market Access
The US is demanding a reduction in high tariffs on Indian agricultural products to improve market access for its goods. There is significant caution regarding opening up the Indian agriculture and dairy sectors, as it is crucial to protect rural communities and local farmers from global price volatility. Agriculture Minister Chouhan stressed that India will not compromise farmers' interests in any trade agreement.
He stated, "We look at the broader picture of trade, not just individual products. Our priority will be to ensure that our farmers do not suffer any harm."
Early Agreement Expected, but Vigilance Remains Crucial
Indian and US negotiators are planning to draft the first phase of this bilateral agricultural agreement by September-October 2025. This agreement will aim to strike a balance between boosting agricultural trade between the two countries and protecting the interests of farmers. Experts believe that this agreement will not only benefit India economically but will also be crucial for the self-reliance of the country's agricultural sector and the stability of the rural economy.
Farmers' Concerns and the Government's Role
There is considerable sensitivity regarding Indian agricultural producers in rural areas. If domestic producers suffer losses due to market liberalization, it will directly impact the rural economy and living standards. Therefore, the government is advancing trade talks while keeping the interests of farmers in mind. Agriculture Minister Shivraj Singh Chouhan stated, "We understand the concerns of the farmers, and we give their voices full respect. This agreement will only be possible if the farmers' safety is ensured."
These bilateral talks on agricultural trade between India and the US could open new avenues for both nations. Expansion of trade will not only increase exports but also foster cooperation in technological partnerships and agricultural innovations.
